DataDot raises $970k in placement

DataDot raises $970k in placement

Microdot technology developer DataDot (ASX:DDT) has raised $970,000 through a share placement to the owner of its distributor in Taiwan.

The company sold nearly 23.7 million shares at 4.1 cents each to Colin Hwang, owner of licensed distributor DataDot Technology Taiwan.

The placement represents just under 5% of DataDot's total issued capital.

The arrangement follows the announcement of a joint venture between DataDot and DataDot Taiwan to commercialise the company's products in certain Chinese markets.

The JV will be funded by DataDot Taiwan but controlled by its licensor, and included as part of the consolidated DataDot group.

DataDot will be eligible for 50% of distributed profits from the JV in perpetuity, in lieu of initial license fees.

It will have license to distribute the products of both DataDot and DataTrace DNA, the product identification and authentication company it formed as a JV with the CSIRO in 2006.

DataDot recently arranged to buy out the CSIRO's stake in this venture, including all the related intellectual property.

The company on Tuesday revealed it had raised $3 million in its recent share purchase plan - $2.1 million from shareholders and the balance from the plan underwriters.

DDT shares ended Wednesday's trading 2.27% lower at $0.043.

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Tags joint ventureShare placementDataDotASX:DDT

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